On Wednesday, William Rapfogel pleaded guilty to grand larceny and other charges in connection with a two-decade scheme in which the former head of the Metropolitan Council on Jewish Poverty stole $7 million and used it to line his pockets and buy political influence.
That last is worth dwelling on. Because the details of the Rapfogel operation tell us that the supposed cure for Albany’s corruption — public financing of campaigns — will only invite more corruption.
Here’s how it worked: Rapfogel overcharged for insurance policies, then skimmed off the extra funds in cash-filled envelopes, some of which he kept and the rest of which he handed over to the campaigns of pols who then gave his organization taxpayer-funded grants.
He did this, moreover, by cleverly gaming New York City’s system of public financing. This is the same system, we remind you, both the governor and the Assembly speaker say they want to impose statewide.
In this system, candidates get $6 for every dollar they raise up to $175 per donation. Rapfogel figured out (as have other scam artists) he’d get more bang for the buck by distributing the money in multiple smaller amounts instead of a single large donation. Thus, four $150 checks, instead of a single $600 check, means the recipient collects $3,600 in public funds instead of $1,050.
So he arranged for straw donors to front the cash that, in reality, was coming from Rapfogel and his collaborators.
Surely Albany’s corruption is bad enough. Do we really need taxpayers to underwrite another revenue stream for the unscrupulous?